Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with these three finance questions. thank you I highlighted the wrong answer already 1. . If interest rates rise, which of the following
need help with these three finance questions.
thank you
I highlighted the wrong answer already
1. . If interest rates rise, which of the following is false? A. The market price of a zero coupon bond falls. B. Prices of existing bonds fall. C. Existing bonds may be called. D. The yield to maturity rises more than the current yield. Its not yield to maturity rises more than the current yield 2. If a company defaults on its bonds A. subordinate debt is redeemed before senior debt. B. Debentures have a superior position to other bonds. C. interest continues to accrue but may not be paid. D. equipment trust certificates have an inferior position to income bonds. Its not. equipment trust certificates have an inferior position to income bonds 3 If investors require a rate of return of 8 percent, what is the value of a perpetual preferred stock that pays a fixed dividend of $2? A. $32 B. $25 C. $50 D. $16 Its not $32Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started